Key Eyes Cleaning Co. Expansion

Key Principal Partners has just drawn up a list of at least 10 possible add–on acquisitions for Kellermeyer Building Services, a commercial cleaning service company. In February, the firm took a $36 million non–controlling interest in the company, helping Kellermeyer’s management acquire the business from CIVC Partners.

How many companies Kellermeyer eventually acquire depends on the size of the targets, said John Sinnenberg, managing partner. Sinnenberg declined to say how much the firm is looking to spend on deals, though it typically invests $5–40 million of equity in portfolio companies. Company management is also angling to get business in more major retailers and grocery chains, he said.

CIVC acquired Kellermeyer from management in May 2001 with its second fund. The Chicago–based private equity firm, currently investing from its $650 million third fund, still owns a number of companies acquired with its second fund, including L.A. Fitness, the fitness club operator. But Chris Perry, partner, said the firm isn’t planning any other exits. The firm typically holds companies for five to seven years.